COSMETICS giant Avon is relocating its headquarters to Britain from New York after 130-years in what is being seen as a major boost for the Brexit campaign.

Avon products are sold worldwide but have been based in the US for 130 years

The multibillion dollar firm, which sells beauty products in 70 countries across the world, has opted to move to the UK despite the chance it will leave the European Union (EU) after the June 23 referendum.

Avon said the move will help the company maximise direct connections to its global operations through a UK base.

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We are taking another important step forward in the execution of Avon's transformation plan

Avon CEO Sheri McCoy

The dramatic shift is part of a three-year turnaround plan in a bid to increase sales following four years of falling sales which resulted in the company selling most of its North American business to private investment firm Cerberus Capital, its biggest investor.

Avon said it would cut about 2,500 jobs out of its 28,300-strong worldwide workforce but did not give any detail on investment or job creation in the UK.

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Avon CEO Sheri McCoy made the announcement on Monday in the US

The move gives a boost to the campaign for Britain to leave the EU just a month after a poll of 700 British and German companies revealed one in three would consider reducing capacities in the UK or relocating if Britons voted to leave the EU this summer.

Sheri McCoy, chief executive, said: "We are taking another important step forward in the execution of Avon's transformation plan.

"With the recent completion of the sale of the North American business, our commercial operations are now fully outside of the United States, allowing us to dramatically rethink our operating model.

Ukip’s employment spokeswoman said the news is "another blow to Project Fear and great news for Great Britain."

Jane Collins MEP, said: ”We've had companies defy Mr Cameron and his team of letter writers in 10 Downing Street by saying they will remain in the UK if we vote to leave the EU but this is a new step as it's a company moving jobs here showing this country can thrive as an independent nation.

"Rather than this nonsense about needing to be governed by Brussels for jobs and to attract inward investment this is direct proof that it's over regulation companies are leaving behind as Avon quit Obama's high tax country.

"Which means that freed from the shackles of the EU and its rules and regulations as well as the drive for a corporate tax base, we will see a thriving economy and real pull factors to companies to base themselves in Britain: a death knell to this lie of three million jobs being at risk should we govern ourselves."

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Avon has a big following, including supermodel Irina Shayk

In January, Avon had outlined plans to cut $350 million in costs over the next three years, invest in technology and tap social media to revive sales.

However, a bigger-than-expected fall in fourth-quarter sales indicated the company had failed to revive demand for its cosmetics in key markets.

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Celebrities such as Reese Witherspoon endorse Avon's products

Shareholder Barington Capital said in a statement: "We believe that there is still much more that needs to be done to improve the business as outlined in our December 3 letter."

In December, investors led? by Barington proposed a restructuring of Avon, and said they had lost confidence in the makeup brand's leadership.